8-K: Hess Midstream Announces Leadership Transition

Hess Midstream LP announced the resignation of President and COO John A. Gatling and the appointment of Michael S. Bast to the role, effective September 26, 2025.

Summary

• John A. Gatling resigned from his role as President and Chief Operating Officer of Hess Midstream GP LLC, effective September 26, 2025.
• Michael S. Bast was appointed to succeed Mr. Gatling as President and Chief Operating Officer, also effective September 26, 2025.
• Mr. Bast, age 49, has served as Director of Upstream Operations and the Maintenance, Reliability and Integrity departments at Hess Corporation since November 2022, overseeing Bakken oil and gas production.
• From November 2019 to November 2022, Mr. Bast was Director of Midstream Operations at Hess, responsible for gathering, processing, export, and disposal activities.
• Effective October 1, 2025, Mr. Bast will also be an employee of Chevron U.S.A. Inc. (CUSA), an indirect, wholly owned subsidiary of Chevron Corporation.
• Officers or employees of CUSA or any Chevron subsidiary serving as officers of GP LLC do not receive additional compensation from Hess Midstream LP or its General Partner for their service.

Sentiment

Score: 7

Explanation: The appointment of an experienced internal candidate with a strong background in relevant operations, particularly within the broader Chevron/Hess structure, suggests a stable transition. While any leadership change carries minor uncertainty, the new appointee's qualifications mitigate potential negative impacts.

Positives

• The appointment of Michael S. Bast brings an experienced leader with a strong background in both upstream and midstream operations at Hess Corporation and Chevron.
• Mr. Bast's prior role as Director of Midstream Operations at Hess (2019-2022) indicates direct familiarity with the company's core business.
• His recent experience overseeing Bakken operations at Hess Corporation aligns well with Hess Midstream's operational footprint and strategic focus.

Negatives

• The departure of an experienced President and COO, John A. Gatling, could introduce a brief period of transition or adjustment.

Risks

• Potential for minor operational or strategic disruption during the leadership transition period.
• The structure where officers are employees of Chevron subsidiaries and do not receive additional compensation from Hess Midstream could present perceived conflicts of interest, although the filing notes no direct material interest in transactions for Mr. Bast beyond his employment.

Future Outlook

The company anticipates a smooth leadership transition with the appointment of Michael S. Bast, leveraging his extensive experience in both upstream and midstream operations within the Hess and Chevron ecosystem to maintain operational continuity and strategic alignment.

Industry Context

This leadership change at Hess Midstream, a significant midstream operator in the Bakken, occurs within the broader context of Chevron's ownership of Hess Corporation. The appointment of an executive with deep ties to Chevron and extensive experience in both upstream and midstream operations suggests a continued focus on operational integration and efficiency within the combined entity's asset base, particularly in the Bakken region.

Management Changes

Related Party Transactions

• Officers or employees of CUSA or any subsidiary of Chevron Corporation who serve as officers of GP LLC do not receive additional compensation from Hess Midstream LP or the General Partner for their service.
• Mr. Bast does not have any direct or indirect material interest in any transaction or series of similar transactions contemplated by Item 404(a) of Regulation S-K other than through his employment with CUSA or any subsidiary of Chevron Corporation, including Hess.
• The Company is managed and controlled by GP LLC, which is wholly owned by Hess Infrastructure Partners GP LLC (HIP GP), and HIP GP is 100% owned by Hess Investments North Dakota LLC (HINDL), an indirect, wholly owned subsidiary of Chevron Corporation. This structure results in certain individuals serving as officers and/or directors of multiple entities within the Chevron/Hess group.
• The Company's Annual Report on Form 10-K for the year ended December 31, 2024, is incorporated by reference for further details on certain relationships and related party transactions.

Stakeholder Impact

• **Shareholders**: The appointment of an experienced executive from within the broader corporate family is likely to be viewed as a stable transition, potentially reassuring investors about continued operational performance and strategic alignment.
• **Employees**: The change in top leadership may lead to minor organizational adjustments, but the internal promotion of a candidate with a long history within Hess and Chevron suggests continuity.
• **Chevron Corporation**: This change reinforces the operational and strategic integration between Hess Midstream and the broader Chevron corporate structure, particularly given the new appointee's direct employment with Chevron U.S.A. Inc.

Next Steps

• Michael S. Bast will officially assume the role of President and Chief Operating Officer effective September 26, 2025.
• Mr. Bast will transition to an employee of Chevron U.S.A. Inc. effective October 1, 2025.

Key Dates

Recommendation

The filing details a routine leadership transition with an internal, experienced successor. While the departure of a President and COO can introduce minor uncertainty, the appointment of Michael S. Bast, with his extensive background in both upstream and midstream operations within the Hess/Chevron ecosystem, suggests continuity and strategic alignment. There are no new financial disclosures or significant strategic shifts indicated that would warrant a change in investment thesis. Therefore, a 'hold' recommendation is appropriate as the company maintains its operational course under new, yet familiar, leadership.

Keywords

Hess Midstream, HESM, Management Change, President, Chief Operating Officer, Michael S. Bast, John A. Gatling, Chevron, Midstream Operations, Bakken